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OTC Trades

Steps when creating an OTC trade:

  • If any WETH is required from you (could be direct payment to counterparty, or just royalty fees):
    • If you do not have enough WETH balance, you will be prompted to wrap some
    • If you have not approved enough WETH, you will be prompted to approve enough
      • You must approve enough to cover all WETH required. You can also approve much more, to avoid having to re-approve on future trades (ie, if you approve 35 WETH and then a trade spends 5 of your WETH, you still have 30 approved)
  • Next, if you’re offering any NFTs to the counterparty:
    • If you have not approved the NFTs’ collections for trading (on either OpenSea or Flip), you will have to do a one-time approval for the collection
  • Once these checks all pass, you can sign the order

Steps when the counterparty wants to execute the trade:

  • If the offerer needs to provide WETH, we re-check the offerer’s WETH balance and approval amount
  • If the offerer needs to provide NFTs, we re-check the offerer’s NFT approval(s)
  • If the counterparty needs to provide NFTs, the counterparty will have to do a one-time approval for the collection
  • If the counterparty has to provide ETH, we check to make sure their balance is enough. There are no required approvals for ETH

What you’re actually approving:

  • WETH: You’re directly approving a smart contract called a “conduit” to execute WETH transfers on your behalf. These WETH transfers can only occur as part of an order you’re participating in, and Seaport is one of the most widely used smart contracts on Ethereum and has processed well over 1 million transactions.
  • NFTs: You’re approving a smart contract called a “conduit” to execute NFT transfers on your behalf. Seaport can instruct the conduit to execute transfers on your behalf, and the conduit allows approvals to carry over across potential future Seaport upgrades.
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